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Industries  /  Software & SaaS
Industry Guide · 2026 Edition

Global hiring for software and SaaS companies

Software companies hire across borders early, and they hit the same five problems: IP that does not assign the way a US contract assumes, options taxed differently in every system, contractor engineers who are employees in substance, sales hires who create a taxable presence, and production data that cannot leave a region.

Roles most hired
Engineering, support, sales
Strongest markets
Poland, Portugal, India
Time to first hire
Days via EOR
Entity required
No
Biggest cost trap
Equity and IP rework
Coverage
160+ countries

Quick answers

The five questions software leadership teams ask first.

Do I need an entity to hire an engineer abroad?

No. An Employer of Record employs the person through a compliant local structure, issues a local contract and runs payroll while you direct the work. Your own entity means incorporating and running payroll yourself. A contractor agreement is lawful only where the person genuinely works independently.

When does an EOR beat setting up a subsidiary?

When speed and optionality matter more than permanence. An EOR onboards in days. A subsidiary takes six to twelve weeks before the first payslip, then carries statutory accounts, audit and filings forever. For one to ten people, the EOR wins. Once the team is durable, or customers need a local contracting party, the entity wins.

What does an engineer cost beyond salary?

Budget 15% to 45% above gross salary. Employer social contributions are most of it, and the spread is enormous: some markets sit in single digits, several in Europe above 20%, a few over 30%. Then add mandatory benefits, an EOR fee and equipment.

Can I give foreign employees stock options?

Usually yes, but the plan you wrote for US employees rarely works unchanged. Countries differ on whether tax lands at grant, vest or exercise, and whether the gain is employment income or a capital gain. Where tax lands at vest, the employee owes real money on shares they cannot sell.

Can I just pay them as contractors?

Not if they work like employees. A full time engineer on your standup, your laptop and your roadmap, paid monthly with no other clients, is an employee under nearly every test there is, whatever the contract says. Reclassification brings back contributions, back tax, interest and penalties, and it puts your IP chain in question.

Why software and SaaS companies employ across borders

The reasons are structural, not fashionable.

The talent is not where you are. Senior backend, platform, security and machine learning engineers are scarce in every major hub at once. Poland, Portugal, India, Vietnam and Brazil hold deep pools of engineers who have shipped production systems for years.

Support has to follow the sun. Once you sell to enterprises across regions, a support and reliability rota covering three time zones stops being optional, and you cannot build one out of a single office.

Cost structure matters again. Boards look at gross margin, not headcount. Building the same capability at a lower fully loaded cost is one of the few levers that does not damage the product. A country that looks cheap on salary can be mid table once contributions are counted.

Expansion needs local presence. Enterprise buyers in Germany, Japan or Brazil want a seller in their language and time zone, an implementation lead who can be on site, and often a local counterparty to contract with.

Acquisitions arrive distributed. Buy a product team and you inherit whatever they built, often contractors across five countries with inconsistent IP assignment. Regularising that before the next diligence is a common reason companies call an EOR provider.

The roles and where they sit

Not every role belongs in every market. Each links to its country guide.

Role familyStrongest marketsWhy there
Software engineeringPoland, Portugal, India, VietnamDeep senior pools and strong English
Data and machine learningIndia, Poland, Canada, United KingdomResearch pipelines and AI employer bases
Product and designPortugal, Spain, NetherlandsProduct culture and US morning overlap
Customer success and supportPhilippines, Colombia, PortugalService depth across every shift pattern
Sales and go to marketUnited Kingdom, Germany, Singapore, MexicoBuyers expect a local seller and contract
Finance and operationsIndia, Philippines, MexicoMature shared services talent

Hiring routes compared

The routes differ on what software companies care about: speed, whether your IP is safe, and whether the person can hold equity.

FactorDryft Global EORYour own entityIndependent contractor
Time to hireDays once terms are agreed6 to 12 weeks before first payroll1 to 5 days
Cost to startMonthly fee per employeeIncorporation, capital, advisers, filingsLowest upfront, highest downstream risk
IP assignment strengthStrong, local assignment languageStrong, drafted directly by youWeakest, depends on contract wording
Can they hold equityYes, from your parent companyYes, from your parent companyRarely clean, often taxed unfavourably
Misclassification exposureNone, the person is employedNone, the person is employedHigh for full time engineering roles
Permanent establishment riskReduced for non closing rolesYou are already taxable in countryHigh if they negotiate or sign
Best for1 to 10 per country, new marketsDurable teams, 10 to 15+ staffIndependent, project scoped specialists

What a global software hire actually costs

These are illustrative planning figures, not quoted rates and not statutory percentages for any country. Real numbers depend on the market, the salary and the ceilings that apply.

ComponentIllustrative rangeWhat drives it
Base salaryReference, 100%Local benchmark, not your home benchmark
Employer social contributions+8% to +30% of basePension, health, unemployment and accident funds, often capped
Mandatory benefits+1% to +8% of baseThirteenth month pay, allowances, insurance, leave accrual
Statutory subtotal+9% to +38% of baseEverything the law requires, before anything discretionary
EOR feeFlat monthly fee per employeeQuoted per country and headcount
Equipment and toolingRoughly 2,000 to 4,000 USD in year oneLaptop, security hardware, software seats, home office allowance
Total cost to employBase +15% to +45%, plus fee and equipmentCompare markets on this line, never on salary alone

Worked example, illustrative only. A senior backend engineer in an EU market on €75,000 gross, with a 22% contribution load and 2% in mandatory benefits, costs roughly €93,000. Add the EOR fee and equipment and you are planning around €100,000 fully loaded.

The five traps that catch software companies

These are the failures we get called in to fix. All are expensive once they have run for a year.

1. IP assignment does not travel

US employment agreements lean on work made for hire, which assigns employee created work to the company automatically. That is US copyright law, not a universal rule. Many civil law jurisdictions vest copyright in the author at creation and recognise a transfer only through a specific written assignment, sometimes requiring the work, territory and consideration to be stated. Several also grant employee inventors extra compensation for patentable inventions, and moral rights often cannot be assigned, only waived. So if your engineer signed your standard US template, your ownership of their code may be weaker than your cap table assumes. The fix is a locally drafted contract with a jurisdiction specific assignment clause or deed.

2. Stock options behave differently in every country

Three questions decide everything. When does tax arise: grant, vest or exercise? What kind of income is it: employment income at marginal rates with contributions attached, or a capital gain? And who collects it, the employee or you through payroll withholding? Where tax lands at vest, an employee in a private company owes cash on shares they cannot sell, which turns a retention tool into a grievance. Where the gain is employment income, employer contributions can attach, so the plan quietly raises payroll cost. Some markets offer favourable qualified regimes if you meet conditions on grant price and holding period, and withdraw them if you do not. The workable answer is one global plan with country sub plans, RSUs where options are punitive, and cash incentives where equity does not work.

3. Engineer misclassification is the highest risk profile there is

Every classification test looks at the same substance: control, integration, exclusivity and who carries commercial risk. A full time engineer fails all four. They attend your standups, take direction from your engineering manager, use your repositories, have no other clients and bear none of the delivery risk. The consequences are retrospective: back contributions and payroll tax for the whole period, interest and penalties, and in many countries the leave, notice and severance the person should have had throughout. Some jurisdictions add criminal exposure for deliberate evasion. It also weakens your IP position, because a dispute about status invites a dispute about ownership.

4. A salesperson abroad can create a taxable presence

Permanent establishment decides whether your company becomes taxable in a country where it has no entity. For software companies the trigger is commercial, not technical. A remote engineer writing code for a foreign parent is usually low risk. A salesperson who negotiates terms, agrees pricing or habitually concludes contracts in your name is the classic dependent agent case, and modern treaty language catches anyone playing the principal role in getting a deal signed, even when the signature happens elsewhere. The exposure is corporate tax on the profits attributed to that activity, plus registrations, filings and penalties. An EOR reduces the risk for non closing roles, but not for someone functionally closing deals in country.

5. Data residency and GDPR reach your engineers

If your product holds personal data about people in the EU or the UK, an engineer with production access is processing that data wherever they sit. That brings obligations by design: a lawful basis, a valid transfer mechanism when data leaves the region, documented processing, and contractual controls flowing down to everyone who touches it. Employee data is protected too, and several jurisdictions restrict staff monitoring far more tightly than the US does, including productivity tracking and access logging beyond what the role requires. Some regulated verticals add residency rules keeping data in country, which constrains where an engineer with production access can sit at all.

Where to hire, country by country

Every market below has a full country guide covering costs, payroll, leave and termination.

MarketBest forGuide
PolandSenior engineering and platformHire employees in Poland
PortugalEngineering, product, designHire employees in Portugal
SpainProduct and EMEA customer teamsHire employees in Spain
IndiaEngineering, data, finance operationsHire employees in India
PhilippinesSupport and back office coverageHire employees in Philippines
VietnamEngineering capacity in Asia hoursHire employees in Vietnam
MexicoNearshore engineering and salesHire employees in Mexico
BrazilLarge pool, Latin America hubHire employees in Brazil
ColombiaBilingual support and deliveryHire employees in Colombia
CanadaMachine learning, US time zonesHire employees in Canada
United KingdomEMEA sales and engineeringHire employees in the United Kingdom
GermanyEnterprise sales and solutionsHire employees in Germany
NetherlandsEuropean commercial hubHire employees in the Netherlands
SingaporeAsia Pacific headquartersHire employees in Singapore

How Dryft works with software companies

  1. Shortlist on total cost, not salary. Give us the role, seniority and time zone. You get a modelled fully loaded cost across three or four countries.
  2. Pick the route per country. EOR while you are small or still testing, your own entity where the team is durable. We say so when the entity is better.
  3. Get IP and equity right in the contract. Local terms carry jurisdiction appropriate assignment language, and we flag inventor compensation and moral rights before the offer.
  4. Onboard in days. Offer, local contract, registrations, benefits enrolment, payroll setup and equipment run in parallel.
  5. Run payroll monthly. Global payroll, contributions, filings, leave, local payslips, one invoice across every country.
  6. Convert contractors and acquired teams. We audit existing arrangements for classification and IP risk, then move the people who should be employees.
  7. Hand over when it is time. When a country outgrows the EOR we transfer the employment to your entity. Recruiting and managed teams sit on the same infrastructure.

FAQ

How fast can you onboard an engineer?

Days in most markets once the candidate has accepted. The variables are registration timelines and right to work checks. We commit to a start date before you make the offer.

Do you support equity administration?

We handle the employment side: how a grant is treated locally, payroll withholding where the employer must do it, and correct treatment on the payslip. Plan drafting and cap table administration stay with your counsel.

What happens when we want our own entity?

People move from the EOR to your entity with service continuity, benefits and pay cycle preserved where local law allows. There is no lock in and no penalty for moving them off.

Can you convert existing contractors to employees?

Yes, and it is one of the most common things we do. We review each arrangement, tell you which are genuinely independent and which are employment in substance, then convert those that need it.

Which countries are hardest?

For different reasons. Some carry high employer contributions. Some make dismissal slow and expensive. Some tax equity at vest. A few cap assignment length. We tell you which applies before you commit.

What does Dryft charge?

A flat monthly fee per employee, quoted per country and headcount, not a percentage of salary. Statutory costs are passed through and itemised. You see the full loaded number before you approve a hire.

Free download

Software & SaaS Global Hiring Kit

This page tells you the rules. The kit tells you what to do, in what order, and what goes wrong when you skip a step.

  • Country shortlisting worksheet on fully loaded cost
  • IP assignment checklist by legal system, with the clauses a US template misses
  • Stock option questions to answer before any grant
  • Contractor to employee conversion playbook
  • Misclassification self assessment across control and exclusivity
  • Permanent establishment controls for sales roles
  • Engineer data access matrix for GDPR
  • Onboarding timeline, offer to first payslip
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This guide is general information, not legal, tax or immigration advice. Every cost figure here is an illustrative planning range, not a quoted rate for any country. Rules differ by jurisdiction and change regularly. Confirm the position for your countries with a qualified adviser before acting. Last reviewed September 2026.

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